Business ethics laura hartman pdf

The third edition of Business Ethics: Decision Making for Personal Integrity and Social Responsibility, by Hartman, DesJardins, and MacDonald, offers a comprehensive, accessible, and practical introduction to the ethical issues arising in business. The text focuses on real-world ethical decision making at both the personal and policy levels and provides students with a decision-making process that can be used in any situation. In addition, practical applications throughout the text show how theories relate to the real world. The third edition features thoroughly updated statistics and coverage of timely issues and dilemmas throughout the text.

Key Features of the Third Edition:

•   New co-author Chris MacDonald brings an enriched sense of hands-on reality.

•   More than 20 new end-of-chapter readings, including new readings with global perspectives and on stakeholder theory.

•   New and updated cases in the form of Opening Decision Points in every chapter.

•    Expanded coverage of current topics such as the Enbridge oil spill in Canada’s Northwest Territories, the MBA Oath, whistleblowers, Goldman Sachs and corporate culture, social media in the employment context, bullying in the workplace, and the growing LIBOR scandal.

•    Completely updated to make the text more readable, to clarify concepts, to better integrate theory and practice, and to improve end-of-chapter questions to better support assessment of student learning, group projects, and classroom discussion.

To learn more about this book and for additional student and instructor resources, please visit www.mhhe.com/busethics3e.

Business Ethics Decision Making for Personal Integrity & Social Responsibility

Laura P. Hartman | Joseph DesJardins | Chris MacDonald

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Business Ethics Decision Making for Personal Integrity and Social Responsibility

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Business Ethics Decision Making for Personal Integrity and Social Responsibility

Third Edition

Laura P. Hartman DePaul University

Joe DesJardins College of St. Benedict/ St. John’s University

Chris MacDonald Ryerson University

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BUSINESS ETHICS: DECISION MAKING FOR PERSONAL INTEGRITY & SOCIAL RESPONSIBILITY, THIRD EDITION

Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2011 and 2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-0-07-802945-5 MHID 0-07-802945-7

Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Publisher: Paul Ducham Managing Development Editor: Laura Hurst Spell Editorial Coordinator: Claire Wood Marketing Manager: Elizabeth Trepkowski Director, Content Production: Terri Schiesl Project Manager: Erin Melloy Buyer: Susan K. Culbertson Media Project Manager: Prashanthi Nadipalli Cover Designer: Studio Montage, St. Louis, MO. Cover Image: (From left to right) Design Pics/Don Hammond/RF; Pixtal/AGE Fotostock/RF; Last Resort/ Getty Images/RF; Photodisc/Punchstock/RF; Design Pics/Don Hammond/RF; Roc Canals Photography/ Getty Images/RF Typeface: 10/12 Times New Roman PS Compositor: Laserwords Private Limited Printer: R. R. Donnelley

All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data Hartman, Laura Pincus.

Business ethics: decision making for personal integrity and social responsibility/ Laura P. Hartman, DePaul University, Joe DesJardins, College of St. Benedict/St. John’s University, Chris MacDonald, Ryerson University.—Third Edition.

pages cm Includes bibliographical references and index. ISBN 978-0-07-802945-5 (alk. paper)—ISBN 0-07-802945-7 (alk. paper) 1. Business ethics. I. DesJardins, Joseph R.. II. Title.

HF5387.H3743 2014 174’.4—dc23 2012045579

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill, and McGraw-Hill does not guarantee the accuracy of the information presented at these sites.

www.mhhe.com

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To Rachel and Emma. — Laura Hartman

To Michael and Matthew. — Joe DesJardins

To Georgia. — Chris MacDonald

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vi

Laura P. Hartman DePaul University Laura P. Hartman is Vincent de Paul Professor of Business Ethics and Legal Studies in DePaul University’s Driehaus College of Business, serves as Special Assistant to the President with a focus on Haiti, and is also Research Director of DePaul’s Institute for Business and Professional Ethics. Hartman also chairs the board of a trilingual elementary school in Haiti: the School of Choice/l’Ecole de Choix. Previously, Hartman was Director of External Partnerships for Zynga .org , through which Zynga players have contributed more than $14 million toward both domestic and international social causes. From 2009 to 2011, Hartman represented DePaul University on the steering committee for Zafen.org , a micro- fi nance organization seeking to enhance economic development in Haiti to ben- efi t Haitians living in poverty. She has been an invited professor at INSEAD (France), HEC (France), and the Université Paul Cezanne Aix Marseille III, among other European universities, and she previously held the Grainger Chair in Business Ethics at the University of Wisconsin–Madison. Her other books include Rising above Sweatshops: Innovative Management Approaches to Global Labor Challenges, Employment Law for Business, Perspectives in Business Ethics, and The Legal Environment of Business: Ethical and Public Policy Contexts. Hartman graduated from Tufts University and received her law degree from the University of Chicago Law School.

Joe DesJardins College of St. Benedict/St. John’s University Joe DesJardins is Vice Provost, as well as Professor in the Department of Philosophy, at the College of St. Benedict and St. John’s University in Minnesota. His other books include: An Introduction to Business Ethics, Environmental Ethics: An Introduction to Environmental Philosophy, Environmental Ethics: Concepts, Policy & Theory , Contemporary Issues in Business Ethics (co-editor with John McCall), and Business, Ethics, and the Environment: Imagining a Sustainable Future. He is the former Executive Director of the Society for Business Ethics, and has published and lectured extensively in the areas of business ethics, environ- mental ethics, and sustainability. He received his B.A. from Southern Connecticut State University, and his M.A. and Ph.D. from the University of Notre Dame. He previously taught at Villanova University.

About the Authors

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About the Authors vii

Chris MacDonald Ryerson University Chris MacDonald is an Associate Professor in the Ted Rogers School of Management at Ryerson University in Toronto, Canada, and a Senior Fellow at Duke University’s Kenan Institute for Ethics. His peer-reviewed publications range across business ethics, professional ethics, bioethics, the ethics of technol- ogy, and moral philosophy, and he is co-author of a best-selling textbook called The Power of Critical Thinking (3rd Canadian Edition, 2013). He has several times been declared one of the “100 Most Infl uential People in Business Ethics” by Ethisphere magazine. He is perhaps best known for his highly respected blog, The Business Ethics Blog, which is carried by Canadian Business.

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viii

Preface We began writing the fi rst edition of this textbook in 2006, soon after a wave of major corporate scandals had shaken the fi nancial world. Headlines made the com- panies involved in these ethical scandals household names: Enron, WorldCom, Tyco, Adelphia, HealthSouth, Global Crossing, Arthur Andersen, ImClone, KPMG, J.P. Morgan, Merrill Lynch, Morgan Stanley, Citigroup, Salomon Smith Barney, and even the New York Stock Exchange itself. At the time, we suggested that, in light of such signifi cant cases of fi nancial fraud, mismanagement, criminality and deceit, the relevance of business ethics could no longer be questioned.

Sadly, though we are now several editions into the publication, these very same issues are as much alive today as they were a decade ago—and decades prior to our original publication. While our second edition was preceded by the fi nancial meltdown in 2008–2009 and the problems faced by such companies as AIG, Countrywide, Lehman Brothers, Merrill Lynch, and Bear Stearns, and of the fi nancier Bernard Madoff , this current edition continues to witness fi nancial and ethical malfeasance of historic proportions and the inability of market mecha- nisms, internal governance structures, or government regulation to prevent it.

As we refl ect upon the ethical corruption and fi nancial failures of the past decade, the importance of ethics is all too apparent. The questions today are less about whether ethics should be a part of business strategy and, by necessity, the business school curriculum, than about which values and principles should guide business decisions and how ethics should be integrated within business and business education.

This textbook provides a comprehensive yet accessible introduction to the ethi- cal issues arising in business. Students who are unfamiliar with ethics will fi nd that they are as unprepared for careers in business as students who are unfamiliar with accounting and fi nance. It is fair to say that students will not be fully prepared, even within traditional disciplines such as accounting, fi nance, human resource management, marketing, and management, unless they are suffi ciently knowledge- able about the ethical issues that arise specifi cally within and across those fi elds.

While other solid introductory textbooks are available, several signifi cant fea- tures make this book distinctive. We emphasize a decision-making approach to ethics, and we provide strong pedagogical support for both teachers and students throughout the entire book. In addition, we bring both of these strengths to the students through a pragmatic discussion of issues with which they are already often familiar, thus approaching them through subjects that have already gener- ated their interest.

New to the Third Edition While our goal for the third edition remains the same as for the fi rst—to pro- vide “a comprehensive yet accessible introduction to the ethical issues arising in business”—you will notice a few changes. To begin, we are enthusiastic to

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Preface ix

introduce a third author to our mix, Dr. Chris MacDonald. You will fi nd his complete biography elsewhere in the text. Inviting Dr. MacDonald to join our author team enriches the book’s sense of hands-on reality. We believe that you will fi nd that Dr. MacDonald, an infl uential thought leader in our fi eld, has a remarkable ability to take today’s complicated business transactions and help us to distill their complexities into completely understandable terms. Because we found ourselves often relying on his work to keep abreast of the latest hap- penings in business ethics, we thought it would be a good idea just to bring him aboard as a co-author! Gratefully, he was willing to join us.

While you might notice Dr. MacDonald’s contributions throughout the text in terms of the Reality Checks and Decision Points, in particular, we have worked to enhance our focus on decision making as well as the emphasis on all elements on both personal and policy-level perspectives on ethics. We continue to provide pedagogical support throughout the text and, with Dr. MacDonald’s contributions, we have provided many new versions of distinct items such as the Reality Checks, Decision Points, and a number of new readings to refl ect new cases, examples, and up-to-the-minute data.

Among these changes are the following:

• More than 20 new end-of-chapter readings, averaging more than two new read- ings for each chapter.

• New readings off ering international and global perspectives. • New or updated cases to serve as Opening Decision Points in every chapter. • New readings on stakeholder theory. • Extremely timely and expanded textual coverage of such topics as the Enbridge

oil spill in Canada’s Northwest Territories, the MBA Oath, whistle-blowers, Goldman Sachs and corporate culture, social media and the employment con- text, bullying in the workplace, and the growing LIBOR scandal.

Finally, we have made numerous small editorial changes in each chapter to make the text more readable, to clarify concepts, to better integrate theory and practice, and to improve end-of-chapter questions to better support assessment of student learning, group projects, and classroom discussion.

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x

Acknowledgments A textbook should introduce students to the cutting edge of the scholarly research that is occurring within a fi eld. As in any text that is based in part on the work of others, we are deeply indebted to the work of our colleagues who are doing this research. We are especially grateful to those scholars who graciously granted us personal permission to reprint their materials in this text: